Marksans Pharma UK-Europe growth outpaced US in Q2FY27

Marksans Pharma Limited reported UK and Europe formulation revenue of Rs 404.6 crore in Q2FY27, up 64.9% year on year, outpacing 8.7% growth in US and North America. The US remained Marksans Pharma’s largest market at Rs 420.9 crore, but the quarterly revenue gap between the two regions narrowed to Rs 16.3 crore.

How did Marksans Pharma’s regional sales compare in Q2FY27?

Marksans Pharma’s US and North America business was its largest regional contributor in Q2FY27, with revenue of Rs 420.9 crore, or 44.8% of operating revenue. UK and Europe was close behind at Rs 404.6 crore, representing 43.0% of Rs 940.2 crore in operating revenue for the quarter.

The gap changed materially from Q2FY26, when US and North America recorded Rs 387.3 crore and UK and Europe recorded Rs 245.3 crore. US revenue increased by Rs 33.6 crore year on year, while UK and Europe added Rs 159.3 crore, narrowing the difference from Rs 142 crore in Q2FY26 to Rs 16.3 crore in Q2FY27.

On a quarter-on-quarter basis, UK and Europe revenue rose 13.7% from Rs 356 crore in Q1FY27, compared with 11.6% growth in US and North America from Rs 377.2 crore. Australia and New Zealand, or ANZ, rose 14.8% sequentially to Rs 100.6 crore, while Rest of World revenue declined 29.6% from Rs 20 crore.

What drove Marksans Pharma’s UK and Europe growth?

Marksans Pharma said QliniQ B.V., its Netherlands-based European front-end, contributed about Rs 40 crore to UK and Europe revenue in Q2FY27. Excluding QliniQ, the region’s revenue rose 48.6% year on year to Rs 365 crore, showing that the reported growth also included expansion in the base business.

The company said the UK market had stabilised after a flat FY26, and that new launches were driving revenue growth and margin improvement. UK and Europe revenue reached Rs 761 crore in H1FY27, up 69.4% year on year, compared with Rs 798 crore for US and North America in the same six-month period.

QliniQ contributed around Rs 84 crore in H1FY27, according to Marksans Pharma. Its Q2FY27 contribution of about Rs 40 crore was therefore less than half of the half-year amount, while the company reported Rs 404.6 crore in total UK and Europe quarterly revenue.

Why did the US remain Marksans Pharma’s largest market?

Marksans Pharma’s US and North America formulation revenue of Rs 420.9 crore remained Rs 16.3 crore above UK and Europe in Q2FY27. The company described this as the region’s highest-ever quarterly revenue, following growth of 8.7% year on year and 11.6% quarter on quarter.

For H1FY27, US and North America revenue was Rs 798 crore, up 11.7% year on year, and was Rs 37 crore higher than UK and Europe revenue of Rs 761 crore. Marksans Pharma said the US order book remained strong despite a softer US consumer environment, supporting its outlook for H2FY27.

The company also said price erosion in its prescription, or Rx, portfolio remained in single digits, without quantifying the rate. In Q2FY27, US and North America represented about 45% of consolidated revenue, while UK and Europe plus ANZ generated Rs 505.2 crore, or 53.7% of operating revenue.

How did ANZ and Rest of World perform?

Marksans Pharma’s ANZ businesses generated Rs 100.6 crore in Q2FY27, up 64.0% year on year and 14.8% quarter on quarter. The company attributed the increase to strong traction in the branded Rx portfolio under Nova Pharmaceuticals, and ANZ represented 10.7% of consolidated revenue.

ANZ revenue for H1FY27 was Rs 188 crore, up 59.0% year on year. Its quarterly revenue was Rs 304 crore below the Rs 404.6 crore recorded in UK and Europe, but ANZ added Rs 39.3 crore of sales from Q2FY26, compared with a Rs 12.4 crore decline in Rest of World revenue.

Rest of World revenue fell 47.0% year on year to Rs 14.1 crore in Q2FY27 and accounted for 1.5% of operating revenue. Marksans Pharma attributed the decline to the West Asia crisis affecting Middle East shipments, and said recovery in coming quarters could follow stabilisation in geopolitical conditions.

What did regional growth mean for Marksans Pharma’s earnings and cash flow?

Marksans Pharma’s operating revenue rose 30.5% year on year to Rs 940.2 crore in Q2FY27, below the 64.9% growth reported in UK and Europe and ANZ’s 64.0% expansion. Gross profit increased 33.6% to Rs 550.1 crore, and gross margin rose 135 basis points to 58.5% from 57.2%, with one basis point equal to one-hundredth of a percentage point.

Earnings before interest, tax, depreciation and amortisation, or EBITDA, increased 48.3% to Rs 214.3 crore in Q2FY27, while the EBITDA margin rose to 22.8% from 20.1%. Profit after tax increased 44.8% to Rs 143.5 crore, and diluted earnings per share was Rs 3.11, compared with Rs 2.17 in Q2FY26.

For H1FY27, operating revenue rose 32.9% to Rs 1,781 crore, EBITDA increased 74.7% to Rs 427.3 crore and profit after tax grew 92.5% to Rs 302.9 crore. Net cash from operating activities reached Rs 322 crore, 4.3 times the H1FY26 level, while free cash flow was Rs 275 crore after Rs 46 crore of capital expenditure.

Conclusion

Marksans Pharma’s Q2FY27 results show a more evenly spread regional revenue base, as UK and Europe and ANZ each expanded by about 64% while US and North America grew 8.7%. QliniQ’s contribution of about Rs 40 crore and 48.6% organic UK and Europe growth brought European revenue close to the still-larger US market, alongside 30.5% consolidated operating-revenue growth.

The next scheduled event is Marksans Pharma’s earnings conference call on November 5, 2026, at 4:00 pm Indian Standard Time. Management is expected to discuss Q2FY27 performance and take questions, with the disclosed H2FY27 US order book, UK launches, QliniQ contribution and Middle East shipment conditions among the matters to watch.